Indian electrical equipment industry records 13% growth in 2022-23: IEEMA
The electrical and industrial electronics industry has witnessed a record double-digit growth of 13% in 2022-23, according to the data compiled by the Indian Electrical and Electronics Manufacturers’ Association (IEEMA), the apex Indian industry association of manufacturers of electrical, industrial electronics and allied equipment. The production volume/quantities of sales data is collected from its member organisations, which represent 90 percent of the entire sector.
“Industry hunger for growth, coupled with positive policy changes and various initiatives undertaken by the Government and industry have led revival of the sector,” the IEEMA report said.
A substantial improvement was witnessed in the 1st and 3rd quarter of 2022-23 which resulted in a sharp rise in the performance. During this period, the industry grew by 28.4% in Q1 and 15.5% in Q3. The astonishing growth of Q1 in 3% is propelled by growth in segments like Transformers (17.5%), Cables (19.4%), Meters (15%) and Rotating Machines (5.7%).
The financial year 2022-23 also proved to be a landmark year for the electrical equipment industry with exports touching 94,169 crores in 2022-23 as compared to 30,670 crores in 2013-14, registering growth of 3.07 times with CAGR of 13.3%. in 9 years. The increase in exports signifies the strength of the Indian electrical industry and positive Government interventions.
India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 416 GW by end of fy 22-23. As per the NEP document, the projected all-India peak electricity demand is 277.2 GW for 2026-27 and 366.4 GW for 2031-32. For this, it is projected to raise capacity to 600 GW and 900 GW by fy 27 & fy 32 respectively, to achieve over 50% share of non-fossil fuel Equivalent evacuation network of power till 2030 is also planned with over 50,000 CKM of transmission lines and 4.4 GVA of sub-station capacity. The m 2022-2027 is estimated to be Rs 14,54,188 crore and for the period 2027-2032 has been estimated to be Rs 19,06,406 crore. The tentative cost of transmission system for evacuating 279 GW of RE addition by 2030 is Rs 2442 bn.
Rohit Pathak, President, IEEMA, said, “India has made a conscious call that as we focus on growth, we will do this in a responsible manner and focus on the Green Transition. As we Build Green (~350 GW of RE electricity over the next 8-10 years will be the largest build out globally), we will have the opportunity to emerge as a global leader in several of the new technologies & solutions for generation, storage (including grid storage) and consumption. Having made strong progress in Make in India over the past few years, we need to now focus on innovation, with greater emphasis on R&D and stronger engagement of industry with academia and startups – move from Make in India to Imagine in India. We are also working with MoP on how the Indian Testing Facility infrastructure can be strengthened and made world class.”
Hamza Arsiwala, President-Elect, IEEMA reacting on the industry growth articulated, “We believe that this growth momentum will be sustained since major chunk of transmission and distribution projects are likely to be ordered in next fiscal. The sector seems to be reviving Strongly. The government is taking proactive steps to achieve the RE generation targets. However, there are still concern areas which have led to decline in growth of some of the segments.”
IEEMA’s Vision is to achieve Exports of USD 25 Billion by 2030. Sunil Singhvi, Vice President, IEEMA said, “The exports have grown more than 3 times in the last 9 years. For the year 2022-23 the Indian electrical industry recorded an increase of 30% as compared to last year.”
Charu Mathur, DG, IEEMA, said, “IEEMA will increase its outreach internationally this year, we will mount business delegations, explore new alliances to help Indian Electrical Industry to increase its global footprint We will work with the Government to explore export promotion measures as well.”
